Page 25 - Policy Wording - Hollard Business Binder (2020-08-26)

1. GENERAL
1.1 The wording is based on the standard Building Combined section but amended to accommodate sectional title type risks.
1.2 Risks include:
• Sectional Title Residential Properties
• Sectional Title Residential Estates
• Sectional Title Office Parks
• Sectional Title Office Blocks
• Sectional Title Non Hazardous Commercial Properties
• Sectional Title Mixed Occupational Properties (Residential/Non-hazardous Commercial)
• Share Block Properties
• Homeowners Associations.
2. UNDERSTAND THE RISK
2.1 A survey will be required for all property exceeding R50 000 000 unless required as a result of claims or at your discretion.
2.2 The survey will indicate if some of the units accommodate a commercial risk of whatever nature.
3. UNDERWRITE THE RISK
3.1 3.2
3.3
As geysers provide the majority of claims, it is suggested the geysers are specified separately and rated accordingly.
Replacement value is difficult to judge and it is advised that a valuator is appointed to obtain accurate values. Average is a specific problem and will be applied in the event of a claim.
Capacity:
3.3.1 Standard Construction:
As per Risk Acceptance Limits. If the accumulation exceeds the limits the risk has to be placed within the Branch.
3.3.2 Thatch and Inferior Construction:
3.3.2.1 Thatch and Inferior Building Construction types are classified as declined risks.
3.3.2.2 Bomas and lapas may be included in quotations if the value is not more than 10% of the overall sum insured.
3.3.2.3 If the size is more than 10% of the size of the standard construction all structures are rated as thatch.
3.3.3 Capacity exceeded:
3.3.3.1 If business is placed within the branch and reinsurance is required the responsibility of same rests within the branch concerned.
3.3.3.2 If business is placed within the binder and reinsurance is required the business must be transferred to the branch who is responsible for reinsurance.
Risk location
Refer to point 2.2 under the Fire section.
Flood levels, rivers
Refer to point 2.5 under the Fire section.
3.4 3.5
Sectional Title and Property Risk
SECTIONAL TITLE AND PROPERTY RISK
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Commercial Underwriting Mandates and Guidelines – Binder – Version 2 2020